[Korea gimmingyeong financial newspaper reporter] this year, KB Financial Group has elected Stuart Solomon, known as MetLife chairman and former 'insurance through "outside directors. The industry predicts that this getdaneun intended for KB Financial sit the non-banking sector, especially in the power group located within a narrow KB Life Insurance. However, true unknowns have much effect as from various regulatory authorities of prolonged low interest rates and financial recession life insurance industry.
In recent years, financial institutions have devoted its attention to non-bank consolidation. This is because the interest rate uncertainty becomes larger and expected profitability of banks will be higher than thought. KB Financial Group also actively raised comes damages insurance and securities has been called the petite. This year's analysis of why the 'KB life time "comes.
◇ non-life insurance, securities and extend petite bulryeoon KB Financial
KB Financial Group was officially launched in 2008 to hold the National Bank. In 2009, KB Life Insurance, while the opening of a branch cloth hung ribbons of the first non-bank affiliate branches. In 2014 he signed a contract of sale for the shares of LIG Insurance acquired the domestic second-tier insurers incorporated and received approval from the Finance Committee later that year. The following year, 2015 KB life insurance, while the official launch to the twelfth subsidiary of KB Financial Group emerged as the Insurance Industry 'tycoon'.
In addition, assets of 5 trillion won in the large brokerage Hyundai Securities insujeon changed my dominion affiliates to win the group. Previously, in terms of volume and profit contribution, banks, KB Card, KB Investment & Securities' net, but was recently reorganized into 'Bank, KB Securities, KB Insurance, KB Card, KB Life' net.
After the official launch of the Year in 2014, KB Financial Group KB Capital affiliates gaebeom eleventh after another, including the non-life insurance 2015 KB, 2017 KB integrated securities have been called the body size of the non-bank affiliates.
Through subsequent acquisitions of non-bank affiliates of KB Financial Group scored a good performance. KB Financial Group was propaganda and record annual net profit last year 1400 Check-out: 1200 2 1 trillion billion won. Following the acquisition by Hyundai Securities LIG Insurance and French were also the group with total assets 375 trillion won level. As a result, even a non-bank affiliate revenue share was only 25% in 2015 increased to 32%.
This non-bank affiliate earnings ratio of KB Financial Group showed nearly 55 percent (1.1794 trillion won) of the total. According to Shinhan Investment Corp. estimates the contribution from the non-banking sector profit of KB Financial Group is expected to increase this year by 37-31% in 2016. Shinhan Investment Corp. predicts that "KB equity securities if given the (ROE) 6.5% contribution in 2017 is expected to be extended to non-banking sector to 38%."
◇ insurance through recruiting outside directors ... Stewart, former chairman Solomon
KB Financial Group thus been focused on the non-banking sector has recently diversified portfolio Solomon Stuart (Stuart B. Solomon) elected former president of MetLife Insurance as the new outside directors. Meanwhile, the life insurance subsidiary of KB Life Insurance two influential groups within the industry and within this phase is relatively low is interpreted as a willingness to strengthen the capacity in terms of life insurance. Stuart Solomon, former president of figures, yet the insurance industry professional managers who indeda through foreign representatives 'jihanpa' of the financial industry. Degree in physiology from the University of Syracuse, New York and South Korea signed a bond with the first Peace Corps in 1971 was being prepared to attend medical school. Solomon is a former president at the time had passed two years volunteering yeogan traveled all over the country in the health center.
Since the former chairman Solomon has worked 16 years in Korea Exchange Bank New York Branch have joined the predecessor of Cologne meth lives of MetLife in 1995 ended in January 2011 retirement. MetLife bought the stake through both Kolon Group Managing Director, Executive Vice President since changed its name to Korea MetLife CEO took office in 2001 and rose to chairman in 2009. Former Chairman Solomon is fluent Korean skills with considerable affection for Korea Culture. Enjoy miso soup that is said kongbiji and eat foods such as South Korea. Industry insiders predicted that "South Korea and the kite deep person," said "As will be pouring new strength to the insurer and management strategies, many foreign shareholders of KB Financial jegyeok" for the former chairman Solomon.
KB Financial Group, cited the advantage of being appointed as a director Stuart Solomon, former president be susceptible to foreign investors. KB Financial Group is a part of foreign shares as high as about 63%. Official "Foreign investors are what you think about the KB Financial Group, the image or reputation, such as it could be a channel of communication," said a positive opinion.
◇ KB Life, Can wings months
The industry predicts that among my choice of these two affiliates of KB Financial Group is located getdaneun intended to sit on a narrow KB life force. Unlike the four largest non-life insurance industry in KB Life Insurance KB because the assets in life insurance industry to rank in the top 17 of the Low of 25 companies. Total assets of 8 trillion in total assets accounted for 887.4 billion won share in KB Life Group is reportedly not less than 2%.
In total assets of the subsidiary and the other was going to be different. The 2.6% level of the main subsidiary of KB Kookmin Bank (307,000,000,000,000), KB Insurance (24) has excessively large gap. The same banking Shinhan Life insurers are even considering a point total assets ratio of 5% share in SFG group is located within the narrow side. Group net profit contribution is insignificant to about 0.6%, but performance has been steadily increasing. KB Life yieoganeun showed growth despite the prolonged slump in the life insurance industry in 65 billion won, 10.6 billion won in 2015, 12.7 billion won in 2016, 2014.
The securities expects to additional methods for M & A in KB Life Insurance industry in an attempt to increase phase. Daishin Securities "KB Financial Group is noted that recommend a life insurance professional outside directors," he said "there is a new International Accounting Standards (IFRS17) Recapitalization is difficult to insurance companies when introduced are expected to come up for sale, first in all sectors in the meantime the move toward a subsidiary of KB financial Group, we believe even communist actively engage in life insurance M & a "and predicted.
In the case of Shinhan Financial Group, which compete for the top spot Shinhan Financial Group Life was the industry's seventh record by the end of December, assets 27.4998 trillion won. The net profit also accounts for 5.43% of the total net SFG to about 150.6 billion won. The industry is looking forward to the opportunity to say 'reversed' to raise KB Financial Group is dragging the Securities and Insurance, including the non-banking sector to enhance life by narrowing the gap with SFG rapidly insurance.
However, KB Financial Group lined the side against these expectations. Naenwatda the official description of "because it was much less interest income of the bank will be strengthened by bringing in non-interest income side," he said "to strengthen the insurance and securities will showcase a variety of financial products." More simply, it is difficult to say, life insurers strengthened 'by the tag of' life insurance from.
In fact strengthen non-interest income is a 'key challenge' of the entire financial sector. And because we have significantly reduced revenues by prolonged low interest rate environment worldwide. KB Financial Group Inc. said it has appointed to judge, that outside directors on its strengths in these sectors as well as non-interest versed in the insurance industry Stewart, former chairman Solomon.
The life insurance industry is also expected to be increasingly difficult to strike a difficult reason that the future of KB Life. IFRS17 recapitalization because of the introduction of olratgi emerged as an urgent task. KB Financial Group was diagnosed as "IFRS17 after the introduction of a policy to see the situation the industry will be able to discuss whether or not to promote M & A" said "Today is a difficult argument to proceed with the merger seotbureuge state."
In fact, last year, KDB Life, ING Life, and the like to the bar came out for sale the temperature difference is appreciated in the market failed to sell. Allianz Life, Tong Yang Life Insurance, PCA Life, etc. were sold at a lower price than the market estimated prices.
KB Life with expanded for only several said it plans Django. Because other affiliates gotta ranked in the top life insurance business there is not only small-scale and fully recognized by the group. Insurance industry officials have predicted that "there is desire to raise her tejiman life in the KB Group level will be difficult to grow in the short-term nature of the insurance industry." Eventually KB loss how to mergers and acquisitions of insurance companies come up for sale on the market, as in the case of insurance, the description would be easier to have two choices in the hands of KB Life.
Compared with non-life insurance industry is also the time scale that is sufficient growth potential because it is a big market. Financial industry officials were diagnosed as "yeogan the past three years, KB Financial Group has raised the non-bank affiliates, Capital, Insurance, Securities turn" and "turn to turn to the life insurance industry."
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